Vincent Mahe, general counsel of the SNI Group, said the fund’s target sector of middle-class housing was “very resilient”.

“Urban areas in France offer the best demographic prospects throughout Europe, thereby increasing the value of our assets in the long run,” Mahe said.

SNI said a new regulatory framework and advantageous tax status (reduced VAT of 10%, as well as exemption from property ownership tax on developed property), had made the sector more interesting to investors.

Negotiated acquisition prices allow for gross rental income of 4.8% and a 7% internal rate of return over 20 years.